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October 15, 2008
Voter Fraud, Disability Law and Green Hypocrisy
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Voter Fraud, Health Care Reforms and Latin American Politics
October 10, 2008
Coalition of Free Market Groups Speaks out against Subsidized Wind Insurance
Washington, D.C., May 7, 2008—A coalition of free market groups, including the Competitive Enterprise Institute, is urging members of the Senate to oppose an expansion of federal insurance subsidies. Please see the text of the letter below:
Dear Senator:
In the next few days the Senate will consider proposals relating to national catastrophe policy. If amendments are offered to the NFIP bill (S. 2284) adding windstorm coverage to the National Flood Insurance Program, creating a federal reinsurance backstop, or providing low interest loans to state catastrophe funds we, free market groups who have joined the coalition Americans for Smart National Catastrophe Policy urge you to oppose them.
We all agree that expanding that these sorts of expansions would do some or all of the following:
* Overwhelm the NFIP. The program already has an $18 billion deficit and is struggling to resolve flood claims, manage fraud arising from Hurricane Katrina payouts, and prevent insolvency. Adding wind insurance will distract from the program’s mission and substantially undermine efforts to stabilize the program.
* Cost taxpayers billions. Experience with the NFIP shows and the AmericanAcademy of Actuaries confirms that adding federally backed wind insurance will not be actuarially sound—despite language to the contrary. Taxpayers nationwide will be left to pay the cost of wind damage, which would more than triple the government’s exposure under NFIP.
* Discourage the provision of wind insurance by the private sector.
* Fail to reduce rates for homeowners.
We strongly believe that adequate insurance rates—which may be quite high in some risky areas—provide the best possible protection for Americans and their homes. We urge you to reject any proposal that would enlarge the federal government’s catastrophe insurance responsibilities.
Grover Norquist
President
Americans For Tax Reform
Tim Phillips
President
Americans For Prosperity
Eli Lehrer
Senior Fellow
The Competitive Enterprise Institute
CEI is a non-profit, non-partisan public policy group dedicated to the principles of free enterprise and limited government. For more information about CEI, please visit our website at www.cei.org.
